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Cogent Comms
(NASDAQ:CCOI)
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Rating:47Neutral
Price Target:
$12.00
▼(-49.22% Downside)
Action:Reiterated
Date:06/30/26
The score is held down primarily by weak financial performance (sharp TTM revenue decline, ongoing losses, negative operating/free cash flow, and high debt with negative equity). Technicals also remain bearish with the stock below major moving averages and negative MACD. Offsetting factors are a high dividend yield and improving strategic execution/deleveraging actions highlighted in the earnings call and reinforced by the completed data-center sale and debt-focused indenture changes.
Positive Factors
Owned global fiber footprint & diversified customer base
Cogent’s extensive owned and leased fiber footprint and broad interconnection (nearly 7,630 networks, presence in 1,929 data centers) create durable scale and resiliency. Low top-25 concentration limits single-customer exposure, supports recurring revenue stability, upsell opportunities and network economics over months.
Negative Factors
Elevated leverage and negative shareholder equity
Substantial gross debt and negative equity create persistent refinancing and covenant risk. High leverage constrains strategic optionality, increases interest expense sensitivity, and forces prioritization of debt reduction over growth investments, limiting operational flexibility for months.
Read all positive and negative factors
Positive Factors
Negative Factors
Owned global fiber footprint & diversified customer base
Cogent’s extensive owned and leased fiber footprint and broad interconnection (nearly 7,630 networks, presence in 1,929 data centers) create durable scale and resiliency. Low top-25 concentration limits single-customer exposure, supports recurring revenue stability, upsell opportunities and network economics over months.
Read all positive factors
Cogent Comms (CCOI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$610.20M
Dividend Yield13.93%
Average Volume (3M)1.33M
Price to Earnings (P/E)―
Beta (1Y)0.69
Revenue Growth-4.83%
EPS Growth11.31%
CountryUS
Employees1,899
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-3.55
Shares Outstanding50,077,663
10 Day Avg. Volume1,624,905
30 Day Avg. Volume1,334,899
Financial Highlights & Ratios
PEG Ratio0.51
Price to Book (P/B)-16.18
Price to Sales (P/S)1.06
P/FCF Ratio-5.22
Enterprise Value/Market Cap5.33
Enterprise Value/Revenue3.43
Enterprise Value/Gross Profit10.58
Enterprise Value/Ebitda16.78
Forecast
1Y Price Target
$21.00Price Target Upside-11.13% Downside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)-3.62
Revenue Forecast (FY)$963.75M
Cogent Comms Business Overview & Revenue Model
Company Description
Cogent Communications Holdings, Inc., founded in 1999 and based in Washington, D.C., functions as a multinational provider of high-speed internet connectivity, private networking solutions, and data center co-location services. Its extensive reach...
How the Company Makes Money
Cogent makes money primarily by selling subscription-based network connectivity services delivered over its owned and leased fiber network. Its core revenue stream is Dedicated Internet Access (DIA), where customers pay recurring monthly fees for ...
Cogent Comms Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: management reported strong execution on strategic items—rapid growth in wavelength revenues and customers, expansion of on‑net revenues and margin improvement year‑over‑year, IPv4 leasing strength, progress on data center monetization and an emerging path to refinance the 2027 notes. Offsetting these positives are near‑term headwinds: a small sequential revenue decline, a sequential EBITDA drop and higher SG&A this quarter, supply‑chain driven CapEx pressure and delayed customer acceptance of wavelength installs, and materially elevated leverage levels driven by Sprint acquisition legacy balances. Overall, the company is making clear strategic progress on product mix and capital structure but faces tangible operational and balance‑sheet challenges in the near term.Positive Updates
Progress on Data Center Monetization
Entered a nonbinding LOI for the sale of 10 former Sprint data centers with buyer due diligence essentially complete; expect closing early summer (June/early July). Company stated aggregate proceeds for the 10 centers are substantially more than $144 million and committed proceeds to Cogent Communications Group to accelerate delevering.
Negative Updates
Overall Revenue Contraction
Total revenue for the quarter was $239.2 million, down sequentially by $1.3 million (-0.6%). Management noted Q1 revenue growth was negative and declines were driven by acquired Sprint customers, though the decline is moderating.
Read all updates
Q1-2026 Updates
Positive
Negative
Progress on Data Center Monetization
Entered a nonbinding LOI for the sale of 10 former Sprint data centers with buyer due diligence essentially complete; expect closing early summer (June/early July). Company stated aggregate proceeds for the 10 centers are substantially more than $144 million and committed proceeds to Cogent Communications Group to accelerate delevering.
Read all positive updates
Company Guidance
The company’s forward-looking framework calls for multiyear targets (not quarter‑to‑quarter) of 6%–8% long‑term average revenue growth and roughly 200 basis points of EBITDA margin expansion per year (management expects to be above that pace in 2026), with refinancing activity to be completed after the make‑whole period ends June 15, 2026 (plan to replace the $750M 2027 unsecured with $750M secured debt); current maturities noted include $600M secured due June 2032, $206M IPv4 ABS May 2029, $174.4M IPv4 April 2030 and $629M of IRU finance leases through 2046. Management expects to monetize Sprint data centers (LOI on 10 centers with aggregate proceeds “substantially more than $144M”) and commit proceeds to delever the Cogent Group; balance sheet at quarter end was ~$2.4B gross debt ($2.0B net), ~7.4x last‑12‑month adjusted EBITDA (net ~6.79x), with leverage metrics under various indentures cited (~6.1x/3.79x and 4.66x/2.9x and fixed coverage ~2.29x–3.0x). Wavelength targets: grow to 25% of North American long‑haul (currently ~3%); Q1 wavelength results: $13.6M revenue (+90.8% YoY, +12.3% seq), 2,263 connections (+71.2% YoY, +9.6% seq), sold in 581 locations to 492 customers, offered in 1,107 locations, ~30‑day provisioning, ARPU $2,093 and churn <0.5%.Cogent Comms Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
12
Very Negative
Cash Flow
18
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 948.70M | 975.77M | 1.04B | 940.92M | 599.60M | 589.80M |
| Gross Profit | 307.44M | 170.62M | 394.27M | 396.69M | 371.45M | 363.46M |
| EBITDA | 193.91M | 186.58M | 161.69M | 1.56B | 229.29M | 218.72M |
| Net Income | -169.67M | -182.17M | -204.07M | 1.27B | 5.15M | 48.19M |
Balance Sheet | ||||||
| Total Assets | 3.06B | 3.10B | 3.17B | 3.21B | 1.01B | 984.56M |
| Cash, Cash Equivalents and Short-Term Investments | 140.26M | 205.11M | 198.49M | 75.09M | 223.78M | 319.61M |
| Total Debt | 2.66B | 2.93B | 2.34B | 1.83B | 1.36B | 1.26B |
| Total Liabilities | 3.16B | 3.16B | 2.95B | 2.60B | 1.53B | 1.36B |
| Stockholders Equity | -104.16M | -63.85M | 222.85M | 609.56M | -518.63M | -373.10M |
Cash Flow | ||||||
| Free Cash Flow | -207.82M | -198.15M | -203.64M | -112.29M | 94.74M | 100.34M |
| Operating Cash Flow | -32.10M | -10.58M | -8.64M | 17.34M | 173.71M | 170.26M |
| Investing Cash Flow | -75.72M | -87.57M | 21.49M | 76.73M | -78.97M | -69.92M |
| Financing Cash Flow | 105.27M | 62.90M | 105.92M | -257.85M | -144.85M | -140.82M |
Cogent Comms Technical Analysis
Negative
23.63
Price Trends
16.95
Negative
19.05
Negative
23.85
Negative
Market Momentum
-1.31
Positive
32.00
Neutral
6.93
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCOI, the sentiment is Negative. The current price of 23.63 is above the 20-day moving average (MA) of 14.31, above the 50-day MA of 16.95, and below the 200-day MA of 23.85, indicating a bearish trend. The MACD of -1.31 indicates Positive momentum. The RSI at 32.00 is Neutral, neither overbought nor oversold. The STOCH value of 6.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCOI.
Cogent Comms Risk Analysis
Cogent Comms disclosed 46 risk factors in its most recent earnings report. Cogent Comms reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cogent Comms Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.50B | 18.74 | 24.73% | 0.47% | 4.24% | -14.30% | |
70 Outperform | $5.57B | 51.61 | 22.76% | 3.30% | 4.05% | -6.99% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $3.76B | 20.06 | 2.75% | 0.39% | -56.04% | ― | |
50 Neutral | $3.62B | -0.68 | -48.58% | ― | ― | ― | |
47 Neutral | $610.20M | ― | 422.83% | 13.93% | -4.83% | 11.31% |
* Communication Services Sector Average
CCOI
Cogent Comms
11.66
-36.13
-75.61%
IDT
IDT
61.08
-3.29
-5.11%
IRDM
Iridium Communications
51.09
20.55
67.27%
LBTYA
Liberty Global A
10.75
0.66
6.54%
TDS
Telephone & Data Systems
35.24
-3.73
-9.58%
Cogent Comms Corporate Events
Business Operations and StrategyM&A Transactions
Cogent Comms Sells Ten U.S. Data Centers
Positive
Jun 29, 2026
On June 29, 2026, Cogent’s indirect subsidiary Cogent Fiber, LLC completed the previously announced sale of 10 data center facilities to an entity sponsored by I Squared Capital for $225 million in cash. The assets, located across major U.S....
Business Operations and StrategyPrivate Placements and Financing
Cogent Comms Amends Indenture to Prioritize Debt Reduction
Positive
Jun 15, 2026
On June 15, 2026, Cogent’s subsidiaries entered into a First Supplemental Indenture with Wilmington Trust to amend the terms of their existing 2025 Indenture governing the 6.500% Senior Secured Notes due 2032. The changes raise the secured l...
Business Operations and StrategyM&A Transactions
Cogent Comms Sells U.S. Data Centers to Investor
Neutral
May 26, 2026
Cogent Communications said on May 26, 2026, that its indirect wholly owned subsidiary Cogent Fiber, LLC, has agreed to sell 10 data center facilities in major U.S. markets, including Phoenix, Chicago and Houston, for $225 million in cash to an ent...
Executive/Board ChangesShareholder Meetings
Cogent Comms Shareholders Approve Directors, Pay and Auditor
Positive
May 4, 2026
On May 1, 2026, Cogent Comms held its annual meeting in Washington, DC, with 38,736,164 of 50,102,364 eligible common shares represented in person or by proxy. Shareholders elected all nominated directors, including Dave Schaeffer and seven other ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.